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Three Ways to Measure Direct Marketing

By Kristin Gabriel

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Published: 22Apr2010
Word count: 461
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If you are a marketing professional, then you and the companies you represent are probably trying to figure out how to measure your marketing tactics. And this isn't easy in today's social media driven market.

Today measuring means direct mail, advertising, and public relations along with all the new digital marketing tactics like blogs, email advertising and Facebook, and Twitter -- all of which are merging with traditional direct marketing.

Basically direct marketing results can be measured by three methods that will enable you to know which of your marketing campaigns is really working to increase your sales and return on investment. These methods include:

1. Cost per acquisition; 2. Cost-per-piece; and 3. The response rate.

Cost per piece is determined by taking your total cost of mailing the postcards and then dividing it by the number of pieces you actually sent out. It is important to note that when you decrease your cost per piece, you also get to lessen your cost per acquisition. However, you must have the same response rate.

Cost per acquisition is key because it helps you to determine whether getting new leads for your business is worth the cost it's going to be to generate them. This is the most common measuring tool that determines the effectiveness of a marketing campaign, which might include a direct marketing campaign with a full color postcard printing and mailing to a target list of potential customers. Cost per acquisition means the result of having your target clients respond to your postcard. This is determined quantitatively by dividing the total cost of mailing the postcards, by the number of responses received.

Last, when you measure the response rate for your direct marketing campaign you can easily calculate the result by dividing the number of people who actually responded to the campaign with the number of people you sent the direct mail piece to. This response rate measurement is important as you can predict early on the success or failure of your direct marketing campaign, whether you choose full color postcard printing or envelope printing for that matter.

Using direct marketing in your advertising and or promotional campaigns, you not only make it more scientific, you also get to quantify results making it easy for you to decide on the best marketing campaign to effect. But keep in mind, only one in 10 prospects are truly ready to buy.

According to a recent research report by MarketingSherpa. The other nine probably don't have room in their current budget or are just looking around, but they'll be ready to buy in the next 24 months, so in order to win their business, these hot leads need to be reminded so when they are ready to buy, your company will be the one they remember and call.

Located in Carlsbad, California, Modern Postcard is a full-service direct marketing provider of postcard products and direct mail services. With more than 25 years of experience, Modern Postcard manages all operations in-house from its 75,000 square foot, state-of-the-art facility. Visit http://www.modernpostcard.com/seminar or call 800.959.8365 ext. 2135.

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